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CIVIL SERVICES PRELIMINARY
EXAMINATION, 2021
Themes
‘Economic Survey 2020-21’
‘Budget 2021-22’
‘More on Current Economy’
Test Paper: 01
Analysed and prepared by: Bhawani Singh Sir
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
1
1. Which of the following statements is
correct as per analysis made and conclusions
drawn in Economic Survey 2020-21?
(a) The growth leads to debt sustainability in
the Indian context and essentially vice-versa
(b) Simulations undertaken till 2030 on India
highlight that given India's growth potential
debt sustainability is likely to be a serious
problem by then
(c) Debt-financed public expenditure is less
cost-effective to employ during recession
than during economic boom
(d) Counter-cyclical Fiscal Policy gets more
important for India as it has large workforce
employed in informal sector
2. In the Financial Year 2020-21 (FY2020-21)
there remained inflationary trends in a
significant part of the year in a large number
of commodities more so in food items despite
the fact that there was unprecedented
slowdown in economies in the world
including in India, why so?
(a) Uncertainty about health crisis
(b) Supply-side shock and disruptions in
supply-chain
(c) Increased burden of health emergency
expanses on the government
(d) Economic stimulus provided by the
Government including AtmaNirbhar Bharat
1.0, 2.0 and 3.0
3. Which of the following statements are
correct as per observations made /
conclusions drawn by Fifteenth Finance
Commission (FC-XV)?
1. Large scale crisis such as global pandemics,
economic depressions and financial shocks
lead to more centralising trends in inter-
governmental fiscal relations
2. Large scale crisis such as global pandemics,
economic depressions and financial shocks
lead to more decentralising trends in inter-
governmental fiscal relations
3. Due to health and economic implications of
COVID-19 pandemic, sub-national
governments have faced a 'scissors effect'
with declining revenues, rising spending
pressure in critical areas of their
responsibility and borrowing constraints
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 1 and 3 Only
(d) 2 and 3 Only
4. In economic recession time various types of
economic recovery are depicted using letters
of English Alphabet - in concept and practice
world-wide. Which of the following is/are
correctly described/depicted?
1. V-shape: Economic growth falls fast and
hard then broader inclusive quick recovery
and growth
2. U-shape: Economy falls then rises and falls
before regaining the prior growth momentum
3. L-shape: After fall some sectors of economy
recover fast with upward trend while some
other sectors continue to flounder or fall for
considerable time
4. K-shape: Economy falls quickly
considerably then broader economy or most
of the sectors take a longer time at low level
before getting growth momentum
Select the correct Code:
(a) 1 Only
(b) 1, 2 and 3 Only
(c) 3 and 4 Only
(d) 1, 2, 3 and 4
5. Which of the following statement are
correct relating to steps taken for creation of
National Digital Health Ecosystem (NDHE) in
India?
1. National Digital Health Mission (NDHM)
and Health Data Management Policy have
been brought in the Year 2021
2. National Digital Health Mission (NDHM)
has a centralised mechanism for managing
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
2
and facilitating use of all data at national level
through a Central Agency
3. Use of Health ID in National Digital Health
Mission (NDHM) is expected to facilitate
seamless portability of health data of a
registered individual with his/her consent
Select the correct Code:
(a) 3 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) None of these
6. Which of the following are monetary
policy trends across the world for overcoming
the economic recession due to COVID-19
pandemic?
1. Fiscal stimulus for multiple sectors of
economy
2. Increasing of key monetary policy rates
3. Quantitative easing measures
4. Loan guarantees
Select the correct Code:
(a) 1 and 4 Only
(b) 2 and 3 Only
(c) 1, 3 and 4 Only
(d) 1, 2, 3 and 4
7. Which of the following statements is/are
correct?
1. 'Remission of Duties and Taxes in Exported
Products (RoDTEP) Scheme' has replaced the
'Merchandise Exports from India Scheme
(MEIS)'
2. 'Merchandise Exports from India Scheme
(MEIS)' has replaced the 'Remission of Duties
and Taxes in Exported Products (RoDTEP)
Scheme'
3. Current Foreign Trade Policy has been
extended till September 2021
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 1 and 3 Only
(d) 2 and 3 Only
8. Which of the following statements are
correct is context of proposals brought /
reforms pursued in Budget 2021-22?
(a) Multipurpose Seaweed Park is to be set up
in Karnataka
(b) National Rail Plan to develop adequate
infrastructure by 2025 to cater to the
projected traffic needs up to 2050
(c) Social security benefits will be extended to
gig economy workers
(d) None of these
9. Which of the following policy preferences
is/are preferred for Forbearance in Economic
Survey 2020-21?
1. It should not be brought at all
2. It should be used as emergency medicine
not as staple food
3. It should continue for relatively a longer
period even after economic recovery
4. There should be some check on use of
forbearance by banks in hiding bad loans and
delaying recognition of losses
Select the correct Code:
(a) 1 and 4 Only
(b) 2 and 3 Only
(c) 2 and 4 Only
(d) None of these
10. Which of the following statements are
correct?
1. If a policy is characterised by "saliency bias"
then historical past over-weighs the recent
phenomenon in policy
2. If the policy is characterised by "saliency
bias" then recent phenomenon overweighs
the historical past
3. Economic Survey 2020-21 says that in
developing long-term health infrastructure
the policy should be guided by the "saliency
bias"
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 1 and 3 Only
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
3
(d) 2 and 3 Only
11. Which of the following statements is
correct?
(a) Higher public debt may lead to crowding
out effect thus impacting growth rate
(b) Crowding out effect leads to reduction in
interest rates and increase in private
investment
(c) Savings essentially reduce as the average
life expectancy in a country increases
(d) None of these
12. Which of the following statements is/are
correct?
1. The COVID Vaccine Intelligence Network
(Co-WIN) is digitised platform which
provides real-time information vaccine stocks
and individualised tracking of beneficiaries of
the vaccine on a real-time basis
2. Advanced economies were/are hit harder
in terms of percentage decline in economic
growth by COVID-19 pandemic as compared
to Emerging Market Developing Economies
as per World Economic Outlook April 2021 of
International Monetary Fund (IMF)
3. Emerging Market Developing Economies
were/are hit harder in terms of percentage
decline in economic growth by COVID-19
pandemic as compared to Advanced
Economies as per World Economic Outlook
April 2021 of International Monetary Fund
(IMF)
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 Only
(d) 3 Only
13. Which of the following statements is
correct relating to how the ₹ 'comes in' in
Budget proposals 2021-22?
(a) Contribution of borrowings and other
liabilities is higher than contribution of
'Goods and Service Tax (GST)', 'Union Excise
Duties', and 'Customs' taken together
(b) Contribution of Goods and Service Tax
(GST) is lower than contribution of Income
Tax
(c) Contribution of Corporation Tax is higher
than contribution of Income Tax
(d) None of these
14. In the COVID-19 pandemic affected
FY2020-21 from 'stringent lock down' to
phased cautious and graded unlocking
denotes which of the following in the tradeoff
in public policy in 'saving lives' and 'saving
livelihood'?
(a) Preference to saving lives over livelihood
throughout the year
(b) Switch over from 'saving lives over
livelihood' to 'balancing saving lives and
livelihood'
(c) Sophisticated and soft balance in 'saving
lives and livelihood' throughout the year
(d) Switch over from 'balancing saving lives
and livelihood' to 'saving lives over
livelihood'
15. Which of the following statement is
incorrect about CPI-IW?
(a) It measures the impact of price rise on the
cost of living of working class families spread
across select industries
(b) The base year of CPI-IW has been revised
from its earlier 2001 to a more recent base
year 2016
(c) It measures changes in the retail prices of
a fixed basked of goods and services being
consumed by an average working-class family
(d) CPI-IW is compiled and disseminated by
Department of Consumer Affairs in Ministry
of Consumer Affairs, Food and Public
Distribution
16. Which of the following reforms in
administration is not facilitated and promoted
through AtmaNirbhar Bharat Package?
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
4
(a) National Recruitment Agency (NRA) to
conduct Common Eligibility Test (CET)
(b) More protection to government officials
against compulsory retirement
(c) Faceless Tax Assessment and Taxpayers'
Charter
(d) Fast-track Investment Clearance through
Empowered Group of Secretaries
17. Which of the following statements is/are
correct based on the analysis made and
conclusions drawn in the Economic Survey
2020-21?
1. Inequality of consumption is what matters
more than inequality of assets or inequality of
income
2. Inequality of assets or inequality of income
is what matters the most rather than
inequality of consumption
3. In most cases inequality of opportunity is
much more objectionable than inequality of
outcomes
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 1 and 3 Only
(d) 2 and 3 Only
18. Which of the following statement is not correct relating to 'Scheme for Special
Assistance to States for Capital Expenditure'?
(a) It is brought due to shortfall in tax revenue
faced by the States in tax revenue arising from
the COVID-19 pandemic
(b) Under it 50-year interest free loan up to
an overall sum not exceeding ₹12,000 crore is
provided
(c) The Scheme also pays attention to 15th
Finance Commission devolution
formulae/suggestions
(d) Loan amount can be used only for new
capital expenditure projects not for the
ongoing projects
19. Ministries were categorised in three
categories during the first two quarters (Q1
and Q2) of the Financial Year 2020-21
(FY2020-21), which of the following
statements is/are correct relating to that?
1. As compared to categories 'B' and 'C'
Ministries those in Category 'A' were imposed
with more restrictions in financial spendings
2. Category 'C' included the Ministries
engaged with providing emergency relief to
people including COVID-19 pandemic
related or carrying out welfare programmes
3. As there was a sharp contraction in the
revenue so the Government wanted to ensure
better availability of funds for essential
activities and health emergency measures
Select the correct Code:
(a) 3 Only
(b) 1 and 2 Only
(c) 2 and 3 Only
(d) None of these
20. Which of the following statements is/are
correct as per analysis made and conclusions
drawn in Economic Survey 2020-21?
1. If poverty is conceptualised in an absolute
sense then with high growth increase in
inequality may be even accompanied by
reduction in poverty
2. If poverty is conceptualised in relative
terms then increase in inequality may be even
accompanied by reduction in poverty
3. Multidimensional Poverty Index (MPI)
based on three dimensions - 'education',
'health' and 'standard of living' makes use of
ten indicators
Select the correct Code:
(a) 3 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) None of these
21. Which of the following statements is/are
correct as per analysis made and conclusions
drawn in Economic Survey 2020-21?
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
5
1. During recession adopting counter-cyclical
fiscal policy essentially leads to lower
economic growth
2. During recession adopting pro-cyclical
fiscal stance essentially leads to higher
economic growth
3. Over the last two and half decades as a
norm in India, GDP growth rates have been
greater than interest rates
Select the correct Code:
(a) 3 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
22. Which of the following statements is/are
correct about the Global Innovation Index
(GII)?
1. In 2020 GII India is ranked 58
2. It has three pillars
3. It was incepted in the year 2015
4. It is co-published by Oxford University and
World Bank
Select the correct Code:
(a) 1 and 2 Only
(b) 1, 2 and 3 Only
(c) 3 and 4 Only
(d) None of these
23. Which of the following statements are
correct about Bare Necessities Index (BNI)?
1. It summarises 11 indicators only on three
dimensions which are water, sanitation and
housing
2. It has been created for all the States for
2012 and 2018
3. Access to bare necessities is highest for
States such as Kerala, Punjab, Haryana and
Gujarat
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
24. Which of the following statement is
correct relating to how the ₹ 'goes out' in
Budget proposals 2021-22?
(a) Allocation to Centrally Sponsored
Schemes is higher than Central Sector
Schemes
(b) Money spent on 'Interest Payments' is
higher than allocations to 'Central Sector
Schemes, and 'Centrally Sponsored Schemes'
taken together
(c) Money spent on 'Pensions' is higher than
money spent on 'Subsidies'
(d) None of these
25. Which of the following statement are
correct about Treasury Single Account (TSA)
System?
1. It was first brought on pilot basis in the
Financial Year 2020-21 however its scope will
be made wider in 2021-22 by including few
more autonomous bodies
2. Under it autonomous bodies directly draw
funds from the Government's account at the
time of actual expenditure
3. It is helpful in improving the efficiency of
public expenditure, reducing parking of funds
and increasing the transparency in public
finance management
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
26. Which of the following statements are
correct relating to the import trends in the
Indian Economy in April-November 2020?
1. Computer hardware and peripherals was
one of the new additions in the list of Top-10
import commodities
2. China did not figure as the largest source
for import origin in this period
3. While Switzerland did not figure in Top-10
import sources, but Germany was the new
addition
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
6
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
27. Which of the following statements is/are
correct relating inflationary trends in
FY2020-21 in Thalinomics and the concept of
Thalinomics (The economics of a plate of food
in India)?
1. For the first time this concept is brought
through Economic Survey 2020-21
2, Thali cost represents the cost of the meal
cooked within a household primarily based
on the Public Distribution System (PDS)
consumption
3. Cost of Thali increased between June 2020
and November 2020 but witnessed a decline
in December 2020
4. The most expansive Veg thali in Urban
Areas was in Andaman & Nicobar Island
while the cheapest was in Madhya Pradesh
Select the correct Code:
(a) 1, 2 and 3 Only
(b) 3 and 4 Only
(c) 2, 3 and 4 Only
(d) 4 Only
28. As per the provisions in 'The Farmers'
Produce Trade and Commerce (Promotion
and Facilitation) Act, 2020', in case of any
dispute arising out of transaction between the
farmer and trader in trading of farmers'
produce can be resolved in which of the
following manner?
(a) Conciliation Board appointed by
concerned Sub Divisional Magistrate
(b) Through litigation in a Civil Court
(c) Special Tribunals are to brought for such
purpose
(d) Bringing the case before State Revenue
Board / Finance Commissioner
29. Which of the following statements is/are
correct about Pradhan Mantri Jan Arogya
Yojana (PM-JAY)?
1. It is being used significantly for low
frequency high cost health-care services
2. It was initially implemented in the year
2014
3. All the States and UTs have implemented it
4. It enhanced health insurance coverage
Select the correct Code:
(a) 1 Only
(b) 2 and 3 Only
(c) 1, 2 and 3 Only
(d) 4 Only
30. Which of the following statements are
correct in context of Budget 2021-22?
1. Never ever in Independent India Budget
followed a contraction except for this year
2. Mega Investment Textile Parks will be
launched as a sub-set and part of Production
Linked Incentive (PLI) Scheme
3. It provides a big push up for a 'Digital
Budget'
Select the correct Code:
(a) 3 Only
(b) 1 and 3 Only
(d) 2 and 3 Only
(d) None of these
31. Why did policy response in handling the
COVID-19 Pandemic in India so much aimed
at 'Flattening the Curve'?
(a) Reducing loss of livelihood of the people
(b) Rural nature of larger part of Indian
population
(c) Overburdened and stressed health-
infrastructure
(d) None of these
32. Which of the following statements is/are
correct relating to data on given Fiscal
Indicators for Budget Estimates 2021-22 and
Revised Estimates 2020-21 (as percentage of
GDP)?
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
7
1. Budget Estimates 2021-22: Fiscal Deficit -
6.8 percent, Revenue Deficit - 5.1 percent,
and Primary Deficit - 3.1 percent
2. Revised Estimates 2020-21: Fiscal Deficit -
9.5 percent, Revenue Deficit - 7.5 percent,
and Primary Deficit - 5.9 percent
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) Both 1 and 2
(d) Neither 1 nor 2
33. Which of the following statements is/are
correct about Pradhan Mantri Jan Arogya
Yojana (PM-JAY)?
1. It covers approximately 50 crore
individuals across 10.74 crore poor and
vulnerable families which form bottom 40
percent of Indian population
2. If aims to set-up some 150,000 health and
wellness centres to provide comprehensive
primary health card service
3. It is portable across the country
4. It provides for secondary and tertiary
hospitalisation only through government
hospitals not through any private healthcare
provider
Select the correct Code:
(a) 2 and 3 Only
(b) 1, 2 and 3 Only
(c) 3 Only
(d) 1, 2 and 4 Only
34. Which of the following statements is/are
correct?
1. Drug prices in India are regulated by
Medical Council of India
2. Drug prices in India are regulated Drug
Controller General of India (DCGI)
3. During COVID-19 pandemic period the
Government constituted an Inter-Ministerial
Empowered Committee to make
recommendations for export of drugs/items
requested by foreign governments
Select the correct Code:
(a) 3 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) None of these
35. Which of the following statements is
correct?
1. Code on Social Security 2020 permits the
inclusion of 'gig economy' workers for social
security benefits under it
2. AtmaNirbhar Bharat Rozgar Yojana was
brought as part of AtmaNirbhar Bharat 3.0
3. AtmaNirbhar Bharat Rozgar Yojana was
brought as part of AtmaNirbhar Bharat 2.0
Select the correct Code:
(a) 1 Only
(b) 1 and 2 Only
(c) 1 and 3 Only
(d) None of these
36. In May 2020 Government of India (GoI)
launched 'CHAMPIONS' online platform to
help and handhold Micro, Small & Medium
Enterprises (MSMEs) which stands for which
of the following?
(a) Creation and Harmonious Application of
Mechanical Productivity for Increasing the
Output and New Skilling
(b) Creation and Harmonious Application of
Mechanical Productivity for Increasing the
Output and National Strength
(c) Creation and Harmonious Application of
Modern Processing for Increasing the Output
and New Skilling
(d) Creation and Harmonious Application of
Modern Processing for Increasing the Output
and National Strength
37. Assertion (A): Indian private sector has to
repay its foreign currency debt by exchanging
rupees through forex reserves.
Reason (R): India does not have full Capital
Account Convertibility.
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
8
Select the correct Code:
(a) Assertion (A) and Reason (R) both are
correct, and Reason (R) is the correct
explanation for Assertion (A)
(b) Assertion (A) and Reason (R) both are
correct, but Reason (R) is not the correct
explanation for Assertion (A)
(c) Assertion (A) is correct, but Reason (R) is
wrong
(d) Assertion (A) is wrong, but Reason (R) is
correct
38. Which of the following statements is/are
correct relating to Import trends in the Indian
economy?
1. Top-10 countries for import origin were
same in April-November 2020 as in April-
November 2019
2. While China PRP was the largest source of
import origin in April-November 2019 but
not in April-November 2020
3. UAE continues to maintain third-place in
top-sources of import origin countries for
India in April-November 2019 as well as in
April-November 2020
Select the correct Code:
(a) 2 Only
(b) 3 Only
(c) 1 and 2 Only
(d) 1 and 3 Only
39. Which amongst the following statements
is/are correct about 'Honouring the Honest'
Platform in tax reforms?
1. It was launched in January 2021
2. More effective physical interface between
tax payers and tax officers
3. Usage of technology, data analytics and
Artificial Intelligence
4. Recognising taxpayers as partners in
nation-building
Select the correct Code:
(a) 3 Only
(b) 3 and 4 Only
(c) 1, 2 and 3 Only
(d) 1, 2, 3 and 4
40. Which of the following statements is
correct based on inflationary trends in
FY2020-21 as per analysis made and
conclusions drawn in Economic Survey 2020-
21?
(a) Although food inflation in rural and urban
areas has almost converged now, divergence
in rural-urban inflation is observed in other
components of CPI
(b) There is more divergence in food inflation
in rural and urban areas while more
convergence in rural-urban inflation is
observed in other components of CPI
(c) There is more convergence in inflation in
rural and urban areas in food inflation as well
as other components of CPI
(d) There is more divergence in inflation in
rural and urban areas in food inflation as well
as other components of CPI
41. Which of the following statements is/are
correct?
1. Hysteresis effect indicates less household
demand thus reduced economic activity of
the firms and reduced household income
2. Hysteresis effect indicates more household
demand thus increased economic activity of
the firms and increased household income
3. Gold emerged as safe-haven investment in
the backdrop of the pandemic crisis
4. Agriculture is the only sector in Indian
economy which has contributed positively to
the overall Gross Value Added (GVA) both in
Q1 and Q2 in FY 2020-21
Select the correct Code:
(a) 1 and 3 Only
(b) 1, 3 and 4 Only
(c) 2 and 3 Only
(d) 2, 3 and 4 Only
42. Which of the following statements are
correct?
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
9
1. India has the largest number of migrants
living abroad and was the top recipient of
remittance in 2019
2. Computer software and hardware attracted
the highest FDI equity inflows in India in
April-September, 2020
3. USA is the most heavily indebted country
in the world in external debt
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
43. Assertion (A): Access to the Bare
Necessities has improved much higher for the
richest households across the country as
compared to the poorest households as per the
trends in the Bare Necessities Index (BNI)
findings.
Reason (R): The richest households can seek
better private alternatives, lobby for better
services, and can move to areas where public
goods are better provided.
Select the correct Code:
(a) Assertion (A) and Reason (R) both are
correct, and Reason (R) is the correct
explanation for Assertion (A)
(b) Assertion (A) and Reason (R) both are
correct, but Reason (R) is not the correct
explanation for Assertion (A)
(c) Assertion (A) is correct, but Reason (R) is
wrong
(d) Assertion (A) is wrong, but Reason (R) is
correct
44. Which of the following steps has/have
been taken by the Government to boost the
exports in recent times or last few years?
1. A National Committee on Trade
Facilitation (NCTF) was constituted with
Finance Secretary to Government of India
(GoI) as the Chair
2. A National Committee on Trade
Facilitation (NCTF) was constituted with
Cabinet Secretary as the Chair
3. Earlier A National Trade Facilitation
Action Plan (NTFAP) was brought for 2017-
20, then steps were initiated for NTFAP for
2020-23
Select the correct Code:
(a) 3 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) None of these
45. Which of the following statements are
correct?
1. Sustainable development places adequate
emphasis on three pillars of development
namely economic, social and environmental
2. As per 5-Year 'National Strategy for
Financial Inclusion (NSFI)' brought by
Reserve Bank of India (RBI) every village
should have access to formal financial service
provider within 1 km radius
3. Economic Survey 2020-21 establishes a
linkage between Sustainable Development
Goals relating to 'clean and sanitation' and
'affordable and clean energy' with the Bare
Necessities in the Bare Necessities Index
(BNI)
4. Intra-generational equity denotes
eradication of poverty and equitable social
and economic development
Select the correct Code:
(a) 1 and 3 Only
(b) 2 and 4 Only
(c) 1, 3 and 4 Only
(d) 1, 2, 3 and 4
46. Which of the following statement is
correct relating to Production Linked
Incentive (PLI) Schemes?
(a) Till now these are implemented in six key
specific sectors
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
10
(b) Quantum of subsidy is solely based on the
export of products by the beneficiary
company
(c) Maximum incentive payable to a
beneficiary is fixed in advance at the time of
approval of beneficiary company/firm
(d) None of these
47. Which of the following reforms has/have
been brought in Centrally Sponsored
Schemes over a period of time?
1. Larger number schemes rationalised into
smaller number of Umbrella Schemes
2. Making cycle of these schemes
coterminous with Finance Commission cycle
3. More direct implementation of these
schemes by Central Ministries and
Departments
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
48. Which of the following financial terms
are correctly put with their respective
meanings?
1. Government net Balance = Total
Government Receipts - Total Government
Expenditure
2. Private Sector Net Balance = Gross Private
Domestic Investment - Gross Private Savings
3. Private Sector Net Balance = Net lending by
Households, Non-Profit Institutions serving
the Households and private Non-Financial
Corporations
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
49. Which of the following statement is/are
correct relating to the provisions in Farmers
(Empowerment and Protection) Agreement
on Price Assurance and Farm Services Act,
2020?
1. No farming agreement shall be entered into
by a farmer with a 'farm service provider' or
'sponsor' in derogation of any rights of a
sharecropper
2. No farming agreement shall be entered into
by a farmer and a 'farm service provider' or
'sponsor' if it is in contravention with State
'Agriculture Produce Marketing Committees
Act (APMC Act)
3. For farming agreement between a farmer
and farm service provider or sponsor
minimum period is one year and maximum is
six years
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 2 and 3 Only
(d) None of these
50. Which of the following statements is/are
correct relating to Merchandise Exports from
India Scheme (MEIS)?
1. It was successfully challenged by USA in
World Trade Organisation (WTO) on
grounds of being inconsistent with WTO
rules and global trade norms
2. India appealed in WTO Appellate Body
which reversed findings of WTO Dispute
Panel
3. India appealed in WTO Appellate Body but
the Appeal is yet pending there
Select the correct Code:
(a) 1 Only
(b) 1 and 2 Only
(c) 1 and 3 Only
(d) None of these
51. Which of the following can be the positive
implications of the Current Account Surplus
and better position of Foreign Exchange
Reserves in 2020-21?
1. Better investor confidence in the country
and on Indian currency
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11
2. It may help in appreciation of Indian
currency ₹
3. Surplus foreign exchange can also be
invested abroad
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
52. Which of the following statements is/are
correct relating to the current Foreign Trade
Policy (FTP) of India?
1. It was brought in 2015 for the period 2015-
20
2. Till now it has been extended twice: First
extension for a period of One Year, and
Second extension for a period of six months
3. Government's official view is that due to
unprecedented situation arising out of the
COVID-19 pandemic it is extended till 30th
September 2021 so as to continue benefits of
various export promotion schemes
Select the correct Code:
(a) 1 Only
(b) 1 and 3 Only
(c) 1, 2 and 3
(d) None of these
53. Which of the following statements are
correct relating to FY2020-21?
1. Expenditure policy of the Government
took care of issue of supporting the vulnerable
sections
2. During lockdown and after unwinding of
lockdown Expenditure Policy aimed at
severely restraining capital spendings looking
at constraints of revenue collection
3. In FY 2020-21 impacted by COVID-19
pandemic General Government (Centre plus
States) fiscal registered a slippage
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
54. Which of the following statements are
correct relating to export trends in FY2020-
21 in Indian Economy?
1. Drug formulations and biologicals have
registered a positive growth
2. Commodities including organic and
inorganic chemicals, electronic goods, gems
and jewellery pulled export growth down
3. India's Current Account Surplus is mainly
contributed by boom in exports rather than
contraction in imports
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
55. In case of any inconsistency between the
provisions of 'The Farmers' Produce Trade
and Commerce (Promotion and Facilitation)
Act, 2020' and any State 'Agriculture Produce
Marketing Committees Act (APMC) Act,
what will be the course of action?
(a) The Farmers' Produce Trade and
Commerce (Promotion and Facilitation) Act,
2020 will prevail over State Agriculture
Produce Marketing Committees (APMC) Act
(b) State Agriculture Produce Marketing
Committees Act (APMC Act) will prevail
over The Farmers' Produce Trade and
Commerce (Promotion and Facilitation) Act,
2020
(c) The matter will be referred to the
Department of Agriculture of the concerned
State
(d) The matter will be referred to Ministry of
Agriculture and Farmers' Welfare,
Government of India (GoI)
56. As per analysis made and conclusions
drawn in Economic Survey 2020-21 which of
the following statements are correct?
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12
1. If economic inequalities increase with
economic growth then obvious there is
essentially an increase in absolute poverty in
the country
2. A family's ability to access bare necessities
such as housing, water, sanitation, electricity
and clean cooking fuel is important
barometer of economic development
3. With economic growth income inequalities
may increase yet absolute poverty alleviation
can can continue
4. With economic growth despite increase in
economic inequalities relative poverty is
bound to reduce
Select the correct Code:
(a) 1 and 2 Only
(b) 2 and 3 Only
(c) 1 and 4 Only
(d) 2, 3 and 4 Only
57. IMF's October Global Financial Stability
Report, 2020 says that near-term global
financial stability risks were contained
mainly due to which of the following?
(a) Steps taken for financial inclusion through
digital inclusion
(b) Timely policy response to maintain flow
of credit to the economy
(c) Steps taken by multiple countries to
maintain food reserves
(d) None of these
58. Which of the following statements is
correct?
(a) The classification of expenditure into
'Plan' and 'Non-Plan' has been removed from
the accounts of the Union but none of the
States
(b) The classification of expenditure into
'Plan' and 'Non-Plan' has been removed from
accounts of the Union but of very few States
(c) The classification of expenditure into
'Plan' and 'Non-Plan; has been removed from
accounts of the Union and of most of the
States
(d) None of these
59. Which of the following statements is/are
correct relating to Budget 2021-22?
1. Two new technologies - 'MetroLite' and
'MetroNeo' will be deployed to provide rail
system at much lesser cost with same
experience, convenience and safety in Tier-2
cities and peripheral areas of Tier-1 cities
2. One Person Companies (OPCs) will be
allowed to grow without any restrictions on
paid up capital and turnover, and allowed
their conversion into any other type of
company at any time
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) Both 1 and 2
(d) Neither 1 nor 2
60. Which of the following statements is/are
correct relating to dispute settlement
concerning farming agreements on farming
produce under Farmers (Empowerment and
Protection) Agreement on Price Assurance
and Farm Services Act, 2020?
1. Such a dispute shall be first referred to the
conciliation board as per the provisions of
farming agreement
2. If the farming agreement does not provide
for conciliation process then on a receipt of a
dispute concerned Sub-Divisional Magistrate
constitutes a Conciliation Board
3. If parties fail to settle their dispute through
conciliation process then Sub-Divisional
Magistrate can decide a dispute in a summary
manner
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 1, 2 and 3
(d) None of these
61. Under Farmers (Empowerment and
Protection) Agreement on Price Assurance
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13
and Farm Services Act, 2020 a farmer and
'farm service provider' or 'sponsor' may enter
into a farming agreement on which of the
following?
1. Farming produce including terms and
conditions for supply and farm services for
such produce
2. Lease and mortgage of the land of the
farmer
3. Sale or transfer of ownership of land of the
farmer
Select the correct Code:
(a) 1 Only
(b) 1 and 2 Only
(c) 1, 2 and 3
(d) None of these
62. As per the provisions of Essential
Commodities Act, 1955 after changes brought
through The Essential Commodities
(Amendment) Act, 2020, Central
Government may regulate the supply of some
foodstuffs under extraordinary circumstances
during which of the following?
1. War
2. Famine
3. Extraordinary price rise
4. Natural calamity of grave nature
Select the correct Code:
(a) 2 and 4 Only
(b) 1, 2 and 3 Only
(c) 1, 3 and 4 Only
(d) 1, 2, 3 and 4
63. Which of the following statements is/are
correct about Jal Jeevan Mission (Urban)?
1. Funding from Government for project will
be in two tranches of 40:60
2. Cities having Million plus population
should take up Public Private Partnership
Projects (PPP) worth minimum 25% of their
total project allocation
3. It will help in pursuing Sustainable
Development Goal 6 (SDG-6)
Select the correct Code:
(a) 3 Only
(b) 1 and 2 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
64. Which of the following statements are
correct relating to Agriculture Sector and
Rural India as pursued/supported in the
Budget 2021-22?
1. Extending coverage of SWAMITVA
Scheme to all States/Union Territories (UTs)
2. Expansion of Operation Green Scheme to
include 22 more perishable goods
3. 1000 more mandis to be integrated with e-
NAM
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
65. Which of the following statements is/are
correct?
1. India has Current Account Surplus in the
Financial Year 2020-21 (FY2020-21)
2. India had Current Account Surplus in
Quarter 1 (Q1) as well as in Quarter 2 (Q2) In
the FY2020-21
3. India had Current Account Surplus in the
Quarter 4 (Q4) of the FY2019-2020
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 1 and 2 Only
(d) 1, 2 and 3
66. Which of the following statements is/are
correct relating to Farmers (Empowerment
and Protection) Agreement on Price
Assurance and Farm Services Act, 2020, The
Farmers' Produce Trade and Commerce
(Promotion and Facilitation) Act, 2020, and
Essential Commodities (Amendment) Act,
2020?
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14
1. All these three laws provided that they
shall be deemed to have come into force on
5th day of June, 2020
2. In January 2021 the Supreme Court stayed
the implementation of all these three laws
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) Both 1 and 2
(d) Neither 1 nor 2
67. Which of the following statements is
correct relating to estimates and projections
on growth prospects of Indian Economy in
the Financial Year 2021-22 (FY2021-22) as
given in Economic Survey 2020-21?
(a) India real-GDP is to record 11.0% growth
and nominal-GDP 16.8%
(b) India real-GDP is to record 11.0% growth
and nominal-GDP 15.4%
(c) India real-GDP is to record 11.9% growth
and nominal-GDP 16.8%
(d) India real-GDP is to record 11.9% growth
and nominal-GDP 15.4%
68. Which of the following is the main reason
that USA launched investigation against some
countries on Digital Service Tax (DST) or
'Equalisation Levy'?
(a) USA alleges it is discriminatory and targets
US Companies
(b) USA feels it may reduce Foreign Direct
Investment (FDI) there
(c) USA favours its bringing when more
number of countries support it
(d) None of these
69. Global tenders are banned/'not permitted'
for government procurement up to ₹200
crore basically aimed at which of the
following?
(a) To curtail down government spendings so
as to make government's efforts more
effective in containing budget deficit
(b) To discourage the dependency of the
government on foreign enterprises and world
economy for better security including 'cyber
security' and self-reliance
(c) To encourage business for Micro, Small &
Medium Enterprises (MSMEs) so that they
could compete and supply for government
tenders
(d) To more encourage Indian corporates to
avail the benefits of the Production Linked
Incentive (PLI) Schemes brought in multiple
sectors
70. Which of the following statements are
correct?
1. Sagarmala was approved in 2015 as a part of
National Perspective Plan (NPP)
2. Operational efficiency of Indian Ports is
better than the global average
3. At state level, State Sagarmala
Development Committee (SDC) is chaired by
State Chief Minister
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
71. Which of the following statements are
correct?
1. Continuing forbearance for a long period
even after recovery from recession may lead
to ever greening of bad loans by banks thus
their under-capitalisation
2. One way of ever-greening of loans is
lending a new loan to a borrower on verge of
default near the payment date of an existing
loan
3. A business group is classified as zombie if
the interest coverage ratio of the entire group
is less than 1
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
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15
(d) 1, 2 and 3
72. Which of the following statement is
correct relating to budget allocation to central
ministries and departments in Budget 2021-
22?
(a) Highest allocation is made to the Ministry
of Health and Family Welfare
(b) Allocation to Ministry of Education is
higher than Ministry of Railways
(c) Top three ministries in descending
sequence of allocation are Ministry of
Defence, Ministry of Health and Family
Welfare, and Ministry of Home Affairs
(d) None of these
73. Which of the following statements is/are
correct about Bare Necessities Index (BNI)?
1. A lower value indicates better access to
bare necessities
2. Green: Below 0.50
3. Yellow: 0.50 to 0.70
4. Red: Above 0.70
Select the correct Code:
(a) 1 and 3 Only
(b) 3 Only
(c) 2 and 4 Only
(d) 1, 2, 3 and 4
74. Which of the following statement is
correct about DigiBoxx?
(a) It is brought by Ministry of Information
and Broadcasting in partnership with Google
(b) It was launched by the Prime Minister in
April 2020
(c) It is News Sharing App supported by
foreign Software-as-a-Service (SaaS)
(d) None of these
75. Which of the following statement are
correct relating to Budget 2021-22?
1. The Agriculture Infrastructure Fund would
be made available to Agriculture Produce
Marketing Committees for augmenting their
infrastructure facilities
2. Application of Treasury Single Account
(TSA) System will be expanded
3. In 2021-22 Initial Public Offering (IPO) of
Life Insurance Corporation (LIC) will be
brought
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
76. Which of the following statements are
correct relating to the Ports, Shipping and
Waterways?
1. Budget 2021-22 pursues Public-Private
Partnership (PPP) for managing operational
services of major ports
2. Budget 2021-22 provides for subsidy
support to promote flagging of merchant
ships
3. Recycling of Ships Act is enacted in 2020
and recycling capacity is to be doubled by the
year 2022
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
77. In case of any dispute on farming
agreement on farming produce under
Farmers (Empowerment and Protection)
Agreement on Price Assurance and Farm
Services Act, 2020 any party aggrieved by the
order of Sub-Divisional Authority (Sub-
Divisional Magistrate) may prefer an appeal
to Appellate Authority presided over by
whom amongst the following?
(a) Divisional Commissioner or an Additional
Commissioner in the Division nominated by
Divisional Commissioner
(b) Collector or Additional Collector
nominated by the Collector
(c) State Revenue Board or Finance
Commissioner of the State as the case may be
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16
(d) A Civil Court having jurisdiction in that
area
78. Phased coming of different versions of
AtmaNirbhar Bharat Abhiyan which are 1.0,
2.0 and 3.0 reflect which of the following in
fiscal stimuli strategy of the government for
pandemic COVID-19 affected economy?
(a) Continuing focus on cushion for the poor
and lenient special support to small businesses
with stringent labour regulations in big
corporate sector
(b) Cushion for the poor and lenient special
support to small business with calibrated
transition to support investment and
consumption demand
(c) Government's priority to Food Security
and Direct Benefit Transfer with pro-poor
approach and strategic approach of the
Government to completely pull away from
public sector in strategic areas
(d) Government's efforts to keep a check on
import to continue with Current Account
Surplus and more restrictive approach on
Government expenditure for containing
Budget Deficit
79. Which of the following statements is/are
correct?
1. 'Thalinomics' or the economics of a plate of
food in India is for the first time brought in
the Economic Survey 2020-21
2. Economic Survey 2020-21 says the network
of schemes designed to deliver Bare
Necessities in Bare Necessities Index (BNI)
include Swachh Bharat Mission (SBM),
National Rural Drinking Water Mission (now
Jal Jeevan Mission), Pradhan Mantri Awaas
Yojana (PMAY), Saubhagya and Ujjwala
Yojana
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 1 and 2 Both
(d) Neither 1 nor 2
80. Which of the following statements are
correct about Pradhan Mantri Garib Kalyan
Yojana (PMGKY)?
1. It increased the wages under Mahatma
Gandhi National Rural Employment
Guarantee Act/Scheme by ₹50 with effect
from 1st April, 2020
2. Lateral collateral free lending support was
increased for women Self-Help Groups
(SHGs)
3. It gave ₹500 per month for the specified
period to women Pradhan Mantri Jan-Dhan
Yojana (PMJDY) account holders
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
81. Which of the following statements is
correct relating to World Solar Bank (WSB)?
(a) International Solar Alliance (USA) plans to
launch it at COP-26 at Glasgow in November
2021
(b) Authorised capital of the bank will be
US$50 billion
(c) It will be headquartered in New York,
USA
(d) None of these
82. Which of the following statements is/are
correct?
1. Eight core infrastructure supportive
industries which include coal, crude oil,
natural gas, refinery products, fertilisers,
steel, cement and electricity have a total
weight of nearly 40 percent in the Index of
Industrial Production (IIP)
2. Government of India (GoI) brought
Agriculture Export Policy in 2018 which aims
to double level of agriculture exports by 2022
from the level achieved in 2017
Select the correct Code:
(a) 1 Only
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17
(b) 2 Only
(c) Both 1 and 2
(d) Neither 1 nor 2
83. Which of the following statements is/are
correct about Business Process Outsourcing
(BPO)?
1. AtmaNirbhar Bharat Package promotes its
use by simplifying Other Service Provider
(OSP) guidelines
2. Digital India Programme promotes its use
under the pillar IT for jobs
3. Ministry of Skill Development and
Entrepreneurship is designated as Nodal
Ministry for setting up BPOs in every North-
Eastern State under Digital India Programme
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 1 and 2 Only
(d) 1, 2 and 3
84. Which of the following statements is/are
correct?
1. As per trends in Goods and Trade
Barometer, World Trade Organization
(WTO) said global merchandise trade growth
in volume was high during the fourth quarter
of 2020 and will remain so in First Half of
2021
2. As per trends in Goods and Trade
Barometer, World Trade Organization
(WTO) said global merchandise trade growth
in volume was high during the fourth quarter
of 2020 but is unlikely to sustain in the first
half of 2021
3. 'The Goods and Trade Barometer' and
'Services Trade Barometer' are
brought/published by World Trade
Organisation (WTO)
select the correct Code:
(a) 1 Only
(b) 2 Only
(c) 1 and 3 Only
(d) 2 and 3 Only
85. Which of the following statement are
correct?
1. In India in the last decade generally actual
tax collection has been higher than what was
budgeted
2. At state level sale tax on petroleum and
alcohol, State excise, stamp duties, vehicle tax
and electricity duty are 'non-GST' taxes
3. A change in tax structure is taken as neutral
if the modified tax is able to realise revenue
comparable to the original tax regime,
relative to the tax base
Select the tax correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
86. Which of the following statements is/are
correct about Pradhan Mantri Garib Kalyan
Yojana (PMGKY)?
1. Prime Minister's Office (PMO) was made
Nodal Agency for its implementation
2. It converged few pro-poor welfare schemes
and makes use of them with enhanced
allocations for the objectives to be achieved
under it
3. The Scheme was brought on 50:50 sharing
basis between Government of India and State
Governments, but for Union Territories it
was 100:0
Select the correct Code:
(a) 2 Only
(b) 1 and 2 Only
(c) 2 and 3 Only
(d) None of these
87. Which of the following statements are
correct relating to Sustainable Development
Goals (SDGs)?
1. There are 17 Global Goals brought in 2015
which are to be achieved by 2030
2. Economic Survey 2020-21 says there is
direct link between Bare Necessities in Bare
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18
Necessities Index (BNI) and SDGs Goal 6 and
Goal 7
3. SDGs Goal Number 13 is on Peace, Justice
and Strong Institutions
4. SDGs Goal Number 17 is on Partnerships
for the SDGs
Select the correct Code:
(a) 2 and 3 Only
(b) 1, 2 and 4 Only
(c) 2, 3 and 4 Only
(d) 1, 2, 3 and 4
88. Which of the following statements is/are
correct?
1. Under Ministry of Food Processing
Industries, 'Operation Greens' was brought
relating to Tomatoes, Onions and Potatoes
(TOP) but 'AtmaNirbhar Bharat' extended it
to all fruits and vegetables (TOTAL)
2. Operation Greens is the 'Umbrella
Scheme/Programme' which includes Pradhan
Mantri Kisan Sampada Yojana (PMKSY) and
multiple other schemes/projects
3. Pradhan Mantri Kisan Sampada Yojana
(PMKSY) is 'Umbrella Scheme' which
includes Operation Greens and some other
schemes/projects
Select the correct Code:
(a) 1 and 3 Only
(b) 1 and 2 Only
(c) 1 Only
(d) None of these
89. Which of the following statements is/are
correct relating to Indian pharmaceutical
industry?
1. It is second largest in the world in terms of
volume and eleventh largest in terms value
2. It had tripled its exports in span of around
ten years from 2010 to 2019
3. India was eleventh in terms of world
pharma exports in 2019
Select the correct Code:
(a) 1 Only
(b) 3 Only
(c) 1 and 2 Only
(c) 2 and 3 Only
90. Which of the following statements are
correct about First World Solar Technology
Summit (WSTS)?
1. It was organised in March 2021 in Tokyo,
Japan
2. It was a Virtual Summit
3. It was organised by International
Renewable Energy Agency (IRENA)
4. It was organised by International Solar
Alliance (ISA)
Select the correct Code:
(a) 1 and 3 Only
(b) 1 and 4 Only
(c) 2 and 3 Only
(d) 2 and 4 Only
91. Which of the following steps were taken
in India for stabilisation of prices of food
items?
1. Operation Greens project extended from
TOP (Tomato, Onion and Potato) to all fruits
and vegetables (TOTAL)
2. Establishing storage facilities for food items
in Public Private Partnership (PPP) mode
3. Amendment in 2020 in Essential
Commodities Act, 1955
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
92. Which of the following statement is
correct?
(a) Fifteenth Finance Commission (FC-XV)
makes use of 2011 census data though its
Terms of Reference (ToR) did not mandate so
(b) Fifteenth Finance Commission (FC-XV)
makes use of 2011 census data and its Terms
of Reference (ToR) mandated so
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
19
(c) Fifteenth Finance Commission (FC-XV)
makes use of 1971 census data though its
Terms of Reference (ToR) did not mandate so
(d) Fifteenth Finance Commission (FC-XV)
makes use 1971 census data and its Terms of
Reference (ToR) mandated so
93. Which of the following statements is
correct relating to Production Linked
Incentive (PLI) Scheme?
(a) The Scheme is for three years period 2021-
22, 2022-23, and 2023-24
(b) It was first brought for Food Processing
Sector later expanded to some other sectors
(c) Percentage of incentive is uniform across
all sectors in which the scheme is
implemented
(d) None of these
94. Which of the following statements is/are
correct relating to Budget 2021-22?
1. The Contingency Fund of India is being
augmented from ₹500 crores to ₹30,000
crores through Finance Bill
2. Borrowings under Treasury Bills have been
revised to ₹1,25,000 crore from the budgeted
estimate of ₹25,000 crore
Select the correct Code:
(a) 1 Only
(b) 2 Only
(c) Both 1 and 2
(d) Neither 1 nor 2
95. Which of the following statements are
correct?
1. Distributed Ledger Technologies (DLTs)
can be used in the Banking System, in
addition to their use in Cryptocurrencies, and
e-KYC compliance cost can be reduced
2. If Central Bank Digital Currency (CBDC) is
brought in a country then regulatory
effectiveness of Monetary Policy of that
country is essentially highly diminished
3. Transactions of Cryptocurrencies are Peer-
to-Peer (P2P) making use of Blockchain and
Smart Contracts with a decentralised system
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
96. Which of the following statement is not correct relating to Production Linked
Incentive (PLI) Scheme?
(a) Its strategy is to offer companies incentives
on incremental sales from products
manufactured in India over the base year
(b) To a give a boost to domestic industry it
promotes domestic investment and
discourages foreign investment in India
(c) Its strategy is to offer companies incentives
on incremental sales from products
manufactured in India over the base year
(d) It will help in creating economies of scale
and enhancing exports making India an
integral part of global supply chain
97. Which of the following statements is
correct?
(a) First ever UN Food Summit will take place
in November 2021 in Glasgow, Scotland, UK
(b) After bringing of Sustainable
Development Goals (SDGs) in 2015, no
Summit on SDGs took place
(c) UK won the bid to host the COP-26
following a partnership with Italy
(d) None of these
98. Which of the following statement are
correct?
1. Cryptocurrency is a Fiat Money and it is
regulated by Central Banks of different
countries in the world
2. Central Bank Digital Currency (CBDC) is a
legal tender and if brought in a country it
helps in promoting digital economy
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
20
3. Digital Service Tax (DST) or Equalisation
Levy is charged on Non-Resident Companies
not based in India giving online
advertisement services to buyers/users based
in India
4. Digital Service Tax (DST) or Equalisation
Levy is charged on companies with fixed
permanent establishment in India giving
online advertisement services to foreign
buyers
Select the correct Code:
(a) 1 and 3 Only
(b) 1 and 4 Only
(c) 2 and 3 Only
(d) 2 and 4 Only
99. As per the growth projections in 'World
Economic Outlook April 2021' of
International Monetary Fund (IMF) which of
the following economic growth trends are
correct in context of comparison between
'Advanced Economies' and 'Emerging
Markets & Developing Economies'?
1. In the year 2020 'Emerging Markets &
Developing Economies' have more contracted
than 'Advanced Economies'
2. In the years 2021 and 2022 'Advanced
Economies' are expected to grow faster then
'Emerging Markets & Developing Economies'
3. In the year 2020 'Advanced Economies'
have more contracted than 'Emerging
Markets & Developing Economies'
4. In the year 2021 and 2022 'Emerging
Markets & Developing Economies' are
expected to grow faster than 'Advanced
Economies'
Select the correct Code:
(a) 1 and 2 Only
(b) 1 and 4 Only
(c) 2 and 3 Only
(d) 3 and 4 Only
100. Cumulatively different versions of
AtmaNirbhar Bharat Abhiyan i.e. 1.0, 2.0 and
3.0 indicate and bring out which of the
following strategies/approaches in handling
the Indian economy by the Government's
fiscal stimuli during 'COVID-19 pandemic'
recessionary period?
1. Cushion for the poor aimed at fulfilling
basic necessities including food security
2. Lenient and special supportive approach for
Micro, Small & Medium Enterprises (MSMEs)
3. Contractionary monetary policy so as to
contain fiscal deficit and inflation and
keeping them easily manageable
4. Support to investment and consumption
demand so as to provide broader growth
momentum and economic recovery
Select the correct Code:
(a) 1 and 2 Only
(b) 3 and 4 Only
(c) 1, 2 and 4 Only (d) 1, 2, 3 and 4
Test Paper-01: ‘Economic Survey 2020-21’ I ‘Budget 2021-22’ I ‘More on Current Economy’ Analysed and Prepared by Bhawani Singh
21
Answer Key:_____________________________________________________________
1. (d)
2. (b)
3. (c)
4. (a)
5. (a)
6. (c)
7. (c)
8. (c)
9. (c)
10. (b)
11. (a)
12. (a)
13. (a)
14. (b)
15. (d)
16. (b)
17. (c)
18. (d)
19. (a)
20. (b)
21. (a)
22. (d)
23. (c)
24. (d)
25. (c)
26. (b)
27. (b)
28. (a)
29. (d)
30. (a)
31. (c)
32. (c)
33. (b)
34. (a)
35. (b)
36. (d)
37. (a)
38. (b)
39. (b)
40. (a)
41. (b)
42. (d)
43. (d)
44. (c)
45. (c)
46. (c)
47. (a)
48. (d)
49. (a)
50. (c)
51. (d)
52. (c)
53. (b)
54. (a)
55. (a)
56. (b)
57. (b)
58. (c)
59. (c)
60. (c)
61. (a)
62. (d)
63. (a)
64. (d)
65. (d)
66. (c)
67. (b)
68. (a)
69. (c)
70. (b)
71. (d)
72. (d)
73. (b)
74. (d)
75. (d)
76. (a)
77. (b)
78. (b)
79. (b)
80. (c)
81. (a)
82. (c)
83. (c)
84. (d)
85. (c)
86. (a)
87. (b)
88. (a)
89. (b)
90. (d)
91. (d)
92. (b)
93. (d)
94. (c)
95. (b)
96. (b)
97. (c)
98. (c)
99. (d)
100. (c)